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Introductory guide to stocks!

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Ruchir gupta
Introductory guide to stocks!

Want to create a feasible pool of savings? Want to multiply the money you saved?

Most of the people thinks that savings in bank accounts are the most sustainable way to make saving and multiply money but no, it only creates the fix interest income. Earnings are less because risks are also less. So, we can say that savings in bank account is the way of keeping the money safe not multiplying or investing!

Acknowledge the meaning of stock!

Stock is a share of company owned by shareholders. These stocks are bought and sold in the share market. Stock market means the collection of buying, selling and allotment of stock of publicly detained companies. Stock market is the effortless replacement for the beginners as they can trade from stock exchange platforms.

Necessary documents while investing in stocks

*     Aadhaar Card

*     PAN Card

*     Proof of residency

*     Passport size photographs

*     Broker approved documents

*     Proof f source of income

*     Cancelled Cheque of bank

Factors to recognize for winning investments

Ø Know the supply and demand

Ø Invest in leading companies of their industry

Ø Changes in company grows the value of stocks

Ø Regular growth in continuous 3 years

Ø Be aware of market trends

Ø Expansion Value

Ø Economic strength of company


Step wise procedure of investing in Stocks

Step1: Understand your Investment necessity.

Step2: Examine the investment strategies

Step3: Invest at right time

Step4: Buy / Sell stocks online

Step5: Observe your investment

Advantages of different type of stocks


1.    Advantages of Common Stocks


Liquidity

Capital Growth

Premium income

Voting benefit

Beneficial tax treatment

Invest in companies with low liabilities

Higher earning potential

Easy purchase on virtually trading platform

Get ahead of expansion problem

Advantage of growing economy

Buy and sell all around the globe

Variety of ways to trade

2.    Advantages of Preferred Stocks

Reliable income

Higher Income

Foremost Safety

Return of principal

Variety of Options

Dividend safety

Higher dividends

Lower risks

No priority status in bankruptcy

Ability to convert in Common stocks

Disadvantages of different type of stocks

1.    Disadvantages of Common Stocks

Pays in last during a company liquidation

Less control over investment

Can lose considerable value in a day

Companies do not pay any dividends

Have to steer numerous stocks

Take time to generate gains

Can be emotional roller-coaster

High level of professional competition

2.    Disadvantages of Preferred Stocks

Limited Upside Potential

Sensitivity in interest rate

No growth of dividends

Risk in dividend income

Foremost risk

Worst features of stocks and bonds

Wrapping up

If you are here then surely you have been actively looking at investing in stock markets and expanding your finance because with that you can stay ahead of expansion. Apart from that, you will have the independence to select which companies to invest in, and also it will serve as a much-necessary liquidity bolster.

It is suggestion from us to not to do invest in stock on a whim. For a beginner, that’s the most dominant thing to understand is that this is not a wagering industry; it works on particular principles that need planned thinking and extensive examination.

Beginners will surely perceive the excitement when they will buy stocks and sell them for increased price. It’s not effortless to understand all the directives, but they can do it. The main thing is to start. They can make minimum investments at first, and they will grow as they acquire more experience.


We are wrapping up the blog with the hope that all these information will help and guide you. If you want to know more in depth about stock market you can read our previous blogs or can get in touch with our experts of stock market that will surely help you in expending your financial portfolio




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